Assign_4_-_Solutions_to_Practice_Problem

Merchandise inventory 27000 e credit card expense

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Merchandise Inventory 27,000 e. Credit Card Expense 9,000 Cash 9,000 Ex. 5–16 Offer F is lower than offer E. Details are as follows: E F List price $30,000 $29,500 Less discount 300590 $29,700 $28,910 Freight 375 $29,700 $29,285 Ex. 5–18
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a. Merchandise Inventory 36,000 Accounts Payable 36,000 b. Accounts Payable 4,000 Merchandise Inventory 4,000 c. Accounts Payable 32,000 Cash 31,360 Merchandise Inventory 640 Ex. 5–23 a. Accounts Receivable—Boyle Co. 45,000 Sales 45,000 Cost of Merchandise Sold 27,000 Merchandise Inventory 27,000 b. Sales Returns and Allowances 9,000 Accounts Receivable—Boyle Co. 9,000 Merchandise Inventory 5,400 Cost of Merchandise Sold 5,400 c. Cash 35,280 Sales Discounts 720 Accounts Receivable—Boyle Co. 36,000 Ex. 5–24 a. Merchandise Inventory 45,000 Accounts Payable—Skycrest Co. 45,000 b. Accounts Payable—Skycrest Co. 9,000 Merchandise Inventory 9000 c. Accounts Payable—Skycrest Co. 36,000
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Cash 35,280 Merchandise Inventory 720 Chapter 6 Discussion Questions 3. No, they are not techniques for determining physical quantities. The terms refer to cost flow assumptions, which affect the determination of the cost prices assigned to items in the inventory. 4. a. LIFO c. LIFO b. FIFO d. FIFO 5. FIFO 6. LIFO. In periods of rising prices, the use of LIFO will result in the lowest net income and thus
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